Читать книгу Reading Financial Reports For Dummies - Lita Epstein - Страница 24

The annual report is broken into the following parts (I summarize the key points of each of these parts in Chapter 5):

 Highlights: These are a narrative summary of the previous year's activities and general information about the company, its history, its products, and its business lines.

 Letter from the president or chief executive officer (CEO): This letter is directed to the shareholders and discusses the company's key successes or explains any major failures.

 Auditors’ report: This report tells you whether the numbers are accurate or whether you need to have any concerns about the future operation of the business.

 Management's discussion and analysis: In this part, you find management's discussion of the financial results and other factors that impact the company's operations.

 Financial statements: The key financial statements are the balance sheet, income statement, and statement of cash flows. In the financial statements, you find the actual financial results for the year. For details about this part of the report, check out the following section, “Getting to the meat of the matter.”

 Notes to the financial statements: In the notes, you find details about how the numbers were derived. I talk more about the role of the notes in Chapter 9.

 Other information: In this part, you find information about the company's key executives and managers, officers, board members, and locations, along with new facilities that have opened in the past year.